Companies Can Avoid Charges by Self-Reporting Fraud

Manhattan's US Attorney's office has introduced a new self-reporting program designed to encourage companies to disclose fraud and financial misconduct. Under this initiative, firms that voluntarily report violations, cooperate fully with law enforcement, and commit to ongoing disclosure for three years may avoid criminal prosecution. This program, established with clear guidelines, aims to provide predictable treatment for companies taking responsibility.

US Attorney Jay Clayton stated that prompt corporate disclosure and cooperation benefit victims, shareholders, employees, and markets. He emphasized that companies doing the right thing should know their standing. This initiative builds on existing practices of favorably weighing voluntary disclosures and cooperation in charging decisions. Encouraging self-reporting allows the office to better focus on prosecuting individuals, as some executive and employee prosecutions stem from information originally obtained through corporate disclosures.